1 Cournot Suppose that the inverse market demand function is given by P 100 - Q. where Q is the total output. There are two firms in the industry. Each firm has a total cost function given by C competing in quantities. Calculate the profit maximizing price and quantity for both firms. = 104., where i = 1,2. They are

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Cournot
Suppose that the inverse market demand function is given by P 100 - Q.
where Q is the total output. There are two firms in the industry. Each
firm has a total cost function given by C; = 10g,, where i = 1,2. They are
competing in quantities.
Calculate the profit maximizing price and quantity for both firms.
Transcribed Image Text:1 Cournot Suppose that the inverse market demand function is given by P 100 - Q. where Q is the total output. There are two firms in the industry. Each firm has a total cost function given by C; = 10g,, where i = 1,2. They are competing in quantities. Calculate the profit maximizing price and quantity for both firms.
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